Binance Records Largest Ever Bitcoin Outflow: Over 162,000 BTC Worth $4.6 Billion Leaves Exchange
Binance, one of the largest cryptocurrency exchanges in the world, recently experienced its largest ever outflow of Bitcoin from its platform.
According to data provided by CryptoQuant, over 162,000 BTC, valued at over $4.6 billion, left the exchange. While such a large fluctuation would typically be seen as an internal adjustment of the wallet, further on-chain inspection suggests that the Binance cold wallet was internally adjusted to a new address, and the new address did not transfer out after receiving funds.
The situation at Binance has left many in the crypto community speculating about what may be going on behind the scenes. However, Binance has not released an official statement regarding the outflow of Bitcoin from its platform.
Adding to the mystery surrounding the situation, on May 7th, Binance announced the temporary closure of Bitcoin withdrawals due to network congestion issues. The exchange stated that its team was actively working on a solution to the problem and would reopen BTC withdrawals as soon as possible. Two hours later, the exchange announced that BTC withdrawals had resumed.
Here is why
The reason for the temporary closure of BTC withdrawals on Binance may be due to the popularity of Inscription and BRC-20, which are causing congestion on the Bitcoin network. As of now, there are reportedly more than 400,000 transactions pending confirmation on the Bitcoin network, setting a new record high. Today’s Bitcoin Ordinals paid a new high of 68 BTC.
As major exchanges continue to list BRC20 Tokens one after another, the congestion of the Bitcoin network may worsen, leading to further delays in transaction confirmations and increased network fees.
The situation at Binance highlights the potential risks associated with centralized cryptocurrency exchanges. While they offer convenience and accessibility to investors, they are vulnerable to security breaches and other disruptions. As the crypto market continues to evolve, investors must take precautions to protect their assets.
In conclusion, the situation at Binance raises important questions about the security practices of centralized cryptocurrency exchanges and the scalability of the Bitcoin network. As the crypto market grows, it is crucial for investors to remain vigilant and take necessary precautions to mitigate risk.
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